Posted by BP/WV on 8/25/06 1:52pm
Msg #140943

OT OT - Homeowners Ins.

Question for P&C Insurance Agents or anyone that knows—

Can one insure a home, with only one lien holder, through two different insurance companies?

Reply by Dennis D Broadbooks on 8/25/06 2:26pm
Msg #140952

Why Would You Want to do That?

What's the purpose? Please clarify the situation a little more for me. The short answer is you probably can (based on my knowledge of MO insurance laws) although I'm sure the insurance companies involved wouldn't issue a policy if they knew beforehand there was a duplicate policy remaining in force on the same risk. The way you've worded it you'd be paying twice the premium amounts & even if there was an insurable claim you wouldn't get paid double. If it was ascertained after the covered loss there are two insurance companies involved, those two companies on the risk would then share pro-rata (50/50) in covering the loss. Please understand I'm basing this from a Missouri P&C perspective & am NOT giving you any advice for West Virginia.

Reply by BP/WV on 8/25/06 6:57pm
Msg #141022

Re: Why Would You Want to do That?

I have prepaid my homeowners insurance up until June 2007. I just renewed it, and had called around for quotes about 2 months ago. Today, I received a message on my answering machine with a quote that is very much lower than the policy I have prepaid, and this quote was from a different company. Therefore, I was just wondering if I could purchase the second since the rate is better. Moreover, keep the insurance I have already paid for in advance.

Reply by CaliNotary on 8/25/06 7:06pm
Msg #141025

I don't understand the logic here

So what if the second rate is better? If you've already paid, you've already paid and I'm not seeing how it's to your benefit to spend twice as much on homeowner's insurance than you need to, doesn't seem like a very good way to save yourself money.

If their rates are good this year, they'll probably be good next year. Just keep them in mind when it's time to renew.

Reply by Dennis D Broadbooks on 8/25/06 7:48pm
Msg #141031

I Reiterate My Original Question...

...WHY would you want to do that? You COULD cancel the policy you've already pre-paid, but then you face paying additional premium to that company because the policy would have to be canceled on a short-rate basis. Short-rate charges can vary depending on how far you are along in the policy period & with each individual company (they could also vary from state to state). Canceling the current policy short-rate would be better than carrying two separate policies in my opinion, but you need to investigate this further. My advice would be to call your current company's agent (if you have one) & ask him/her what's the best course of action. As I stated in my first reply to you on this subject...do NOT consider this as insurance advice on my part. I'm licensed for P&C in the State of Missouri & have been for over 29 years, but I don't pretend to know all the ins & outs of WV insurance laws.

Reply by Victoria/NJ on 8/26/06 1:34am
Msg #141080

See if you can drop the rate with your current carrier

It all boils down to math. If the new rate is really that much lower, take the hit on cancelling your current policy. You should still come out ahead if you are talking $100's of dollars difference between the 2 since Insurer #1 has to refund a good portion of the current Policy since it just went in to effect in June 2006 (?)

Reply by John_NorCal on 8/25/06 3:23pm
Msg #140971

Can't speak for other states, but if the intent is to get double coverage in the event of a loss, it won't work. Now if there is an excess of liability over and above the loan amount, then an excess lines carrier can be used. But I don't see that happening in the average home loan scenario, that would be more for a commercial lines scenario.